SFO to borrow $4 billion for upgrades

San Francisco International Airport's leaders announced Monday they plan to borrow more than $4 billion to pay for a 10-year building and renovation plan that includes a proposed 400-room hotel.

Airport Director John Martin said the idea is to create a "world-class" experience in two domestic terminals as well as carry out "improvements" on the just over 10-year-old international terminal. He estimated the cost at $4.1 billion.

The spending is intended to bring the rest of the airport in line with the $383 million makeover of Terminal 2 which opened in April 2011. That terminal features California-living touches such as a yoga room, a wine bar and a restaurant that uses only local, organic ingredients.

San Francisco Mayor Ed Lee, standing in the under-construction boarding area E for a news conference, said the airport requires investment in order to keep up with the competition.

"You'll see also the future of the airport come alive as it's created in the innovation capital of the world: San Francisco," Lee said.

Voters won't have to approve the debt, which comes in the form of bonds. It's to be repaid from the airport's revenues that include the charges paid to the facility by airlines and rental car companies.

In addition to spending money to spruce up boarding areas and terminals, the city and airport officials also want to build a $130 million, 400-room hotel on a slice of land between Highway 101 and South McDonnell Road. The hotel would belong to the airport, but a hired company would run the "four-star" lodging.

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"Rather than just following what other airports have done," Martin said, "we want to set the standard and raise the bar for airport performance."

City and airport officials said the work, to be carried out over the next 10 years, would create 36,000 jobs, many of them on the Peninsula. San Mateo County Supervisor Dave Pine said he was happy for residents to have the work but had one favor to ask.

"Finally, just one small request for the airport and Mayor Lee," Pine said. "We probably should put a little plaque somewhere in here saying, 'Welcome to San Mateo County.' "